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Check eligibilityWhat a master rental agreement is
Operating leases in India are usually documented in two layers: one master rental agreement (MRA) holding the terms common to every asset, and a rental schedule for each asset. The MRA typically covers four areas.
1
Rentals: how rentals are invoiced and paid, how GST is charged and what happens if a payment is late.
2
Use and care: where and how the assets may be used, and the lessee's duties to maintain and insure them.
3
Default and remedies: events of default, such as missed rentals or insolvency, and what the lessor may then do.
4
End of term: the return conditions and the options to return, re-rent or buy each asset.
The MRA itself usually names no specific asset or amount. Those come in each rental schedule, which is read together with the MRA as one lease.
When an MRA is used
An MRA suits a business that expects to lease more than once. The alternative is a standalone agreement for each lease.
WHAT CHANGES
MRA with schedules
Standalone lease
Number of assets
Several, added over time
One asset or one lot
Negotiating terms
Once, then reused for each asset
Again for every new lease
Adding equipment
Sign a new rental schedule
Draft and sign a new agreement
Best for
An ongoing capex plan
A one-off need
How an MRA works in a lease
With Capexo, the MRA is signed early, alongside the lease mandate and before the facility is sanctioned. When each asset is delivered, the lessee confirms delivery and signs a rental schedule for it, and the lessor then pays the supplier.
Common terms sit in the MRA.
Payment, maintenance, insurance, default and return terms are agreed once and apply to every schedule, so terms stay consistent as assets are added.
Schedules carry detail.
Each rental schedule adds one asset or set of assets, with its own cost, rentals, tenure and start date. Schedules can start and end on different dates.
Stamp duty on lease documents varies by state. Check what applies before you sign.
Where it shows up
A manufacturer adding machines over a year
ILLUSTRATIVE
A Pune auto-components maker signs one MRA with its lessor in March 2026. Schedule 1 adds three CNC machines at ₹80 lakh each, ₹2.4 crore in total, for 48 months from 1 April 2026. In January 2027 it needs a ₹60 lakh inspection system. Within its sanctioned facility, it signs Schedule 2 for 36 months from 1 January 2027, without renegotiating the legal terms. The MRA now covers ₹3 crore of equipment, and each schedule keeps its own rentals and dates: Schedule 1 runs to 31 March 2030 and Schedule 2 to 31 December 2029.